Honda Atlas Cars Pakistan Limited

Seminar in Marketing Project Report on Honda Atlas Cars Pakistan Limited

Submitted to: Miss. Benish Sarwar Submitted by: Alia Athar Ahsan Yameen Zeshan ur Rahman Saba Pervaiz M. Nomaan Ali Yazdan MBS 09 22 MBS 09 32 MBS 09 46 MBS 09 49 MBS 09 50 MBS 09 52

MBA 5th Semester

Session

2009 2012

Bahauddin Zakariya University Sub Campus Sahiwal.

Honda Atlas Cars Pakistan Limited

Introduction of the Company
Honda Atlas Cars Pakistan Limited is a joint venture between Honda Motor Company Limited Japan, and the Atlas Group of Companies, Pakistan. The company is listed on Karachi, Lahore and Islamabad Stock Exchanges.The principal activities of this company include assembling, manufacturing and selling of passenger cars and spare parts. The company has introduced four new models of Honda Civic and four models of Honda City and it introduced the third generation Honda City on January 31, 2009.

Accord CR-V Civic City

Honda Atlas Cars

Honda Atlas registered a positive growth in vehicle sales. The Dealerships Network has expanded and now the company has sixteen 3S (Sales, Service and Spare Parts) and thirty 2S (Service and Spare Parts) Pit stops network in all major cities of Pakistan. Percentage of local parts conforms to the government's policy. Local vendors are continuously patronized to develop parts locally. The quality of local parts is thoroughly checked to meet stringent international standards. It is the constant endeavor of Honda Atlas Cars (Pakistan) Limited to achieve No .1 Customer satisfaction. Honda Atlas Cars (Pakistan) Limited is committed to meet customer expectations, and to provide good value for money.

Honda Atlas Cars Pakistan Limited

PROMOTION STRATEGIES OF HONDA
PUSH strategy The HONDA Atlas Cars using the promotion program aimed primarily at middleman. In HONDA the product is push through the channel. The HACPL heavily promotes the distributors among different countries in order to facilitate the customer. Strategy implementation

HONDA MOTOR COMPANY LIMITED JAPAN

HONDA ATLAS CARS (PAKISTAN) LTD.

DISTRIBUTOR NETWORK

END CONSUMER

Honda Atlas Cars Pakistan Limited

Promotion Tools

Honda Atlas Cars Pakistan Limited

1) Direct marketing
Direct marketing is the consumer direct channel to reach and deliver goods and services to consumer without using marketing middlemen. These channels include direct mail, websites, catalogs, interactive TV and mobile devices. The HONDA ATLAS CARS is using all the astonishing elements of this fastest growing avenue of consumer servicing. Distinctive characteristics of direct marketing Nonpublic (the message is normally addressed to a specific person.) Customized (the message can be prepared to appeal to the addressed individual) Up-to-date (a message can be prepared very quickly) Interactive (the message can be changed depending on the persons response) Channels of direct marketing adopted by HONDA Direct mail Websites Catalog marketing Direct mail The company involves in direct mail marketing i-e sending an offer, announcement, reminder or other item to the consumer through fax mail, e-mails, and voice mail. Websites The websites of the company are also used in enhancing the customers view about the product, as the complete information of features and facilities is available on the Internet. One of the websites is www.honda.com.pk .It is regularly updated and maintained according to the specification. Catalog marketing In this regard the company sends full line product catalogs usually in print form but also sometimes as CDs, videos or online.

Honda Atlas Cars Pakistan Limited

2) Public relations
Public relation involves

A variety of programs designed to promote or protect a companys image or its individual products. At HONDA the PR department monitors the attitude of the organizations public relations and distributes information to build good will. The PR departments spend time counseling top management to adopt positive programs and to eliminate questionable practices so that negative publicity does not arise in the first place. The PR department established by the distributors receives complaints from the customers and then these complaints are transferred to the HAC head office so that suitable actions are taken by the company in order to resolve customers problems. HONDA ATLAS is engaged in different programs to promote the sales through public relations. For public relations they participate in different types of programs to increase the interest of public and to introduce their now product via these promotional campaigns. Features of public relation The appeal of public relation is based on three distinctive qualities: High credibility Ability to catch buyers off guard Dramatization

Functions performed by public relation (PR) department at HONDA Corporate communication Press relation Product publicity Counseling

Honda Atlas Cars Pakistan Limited

Major tools in PR The major tools which are used in establishing public relations as follows

TOOLS IN PR

Newsletters

Annual Report

In this regard they are also following the strategies of Relationship Marketing. It can be described as: Building mutually satisfying long term relations with key parties

Honda Atlas Cars Pakistan Limited

3) Advertising
Advertising means Reasons to buy And can be described as: Advertising is non personal presentation and promotion of ideas, goods or services by an identified sponsor. The marketing department of the distributors holds HONDAS advertising. Every distributor is responsible for its own advertising program. Advertising plays a very significant role in the promotion of new product. Its usually more attractive than the other promotional campaigns. There are different forms of advertisements that a company performs according to the nature of the target market. The purpose of advertising is to introduce the customer by the new product and to give the information about the existing product.

The features of HONDAS advertising are as follows

Public presentations (advertisings public nature confers a kind of legitimacy on the

product and also suggest the standardized offerings)

Pervasiveness (permits the sellers to repeat a message many times) Amplified expressions (advertising provides opportunities for dramatizing the company
and its products through the artful use of print, sound and color.)

Impersonality (the audience does not feel obligated to pay attention or respond to
advertising.)

Honda Atlas Cars Pakistan Limited

4) Sales promotion
Sales promotion is considered as Incentive to buy And can be described as It is a verity of short term incentives to encourage trial or purchase of a product or service. Sales promotion is a key ingredient in HONDAS marketing campaigns. As it consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of products by customers. Benefits of sales promotion There are three benefits, which the HONDA ATLAS CARS derives from the use of the sales promotional tools. Communication Incentives Invitation Major consumer promotional tools In HONDA major promotional tools are as follows: Product warranties Point of purchase displays and demonstrations Adequacy of repair facility Customer service follow ups Service packages for customers Events related to customer prizes Free check-up campaigns on regular basis The warranty is normally given for one year or on 20,000 kilometers drive, which comes earlier. This warranty is based on the parts replacement. The demonstrations are also given to the customer in order to aware about the products exclusive features.

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4 Ps Of Marketing

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Product
HONDA CITY

Honda City was first launched by HACPL on January 22-23, 1997. Honda's all-new Third Generation Honda City was launched in January 31 2009. It comes with a completely new design, new engine, and roomy cabin and equipped with various active and passive safety features. The company has also launched the 1.3L MT & AT versions of the City. The new Honda City features SOHC, 16 valve 4-Cylinder i-VTEC engine.

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Honda Atlas Cars Pakistan Limited

HONDA CIVIC:

The Civic is Hondas largest selling model globally and is now sold in approximately 160 nations and regions worldwide. Honda Civic was first launched in Pakistan on January 10-11, 1996. The new Honda Civic Reborn was launched on July 29, 2006. The new Civic Reborn was launched with more aggressive and sportier look. The introduction of stylized Dark Smokey Headlights & Crystalline Octagonal Tail Lights enhances the modern look of the car. New Civic Reborn is available in 4 variants i-VTEC (MT), i-VTEC (PT), VTI ORIEL (MT) & VTI ORIEL (PT). It features 16-Valve SOHC i-VTEC 4-Cylinder engine

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Honda Atlas Cars Pakistan Limited

HONDA ACCORD:

The Honda Accord was first introduced as a Completely Built Unit (CBU) import in Pakistan on August 11, 2005. HACPL launched the new model of Honda Accord on July 20, 2008. The Honda Accord is available in 2.4L engine. It is available on confirmed order basis for the customers .The All-new Accord comes with 5-speed Automatic transmission. The AT now has Shift Holding System which avoids unnecessary gear shifting on winding roads and helps in hassle free drive. The 2.4L Honda Accord features DOHC, 16-Valve 4-Cylinder i-VTEC engine.

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Honda Atlas Cars Pakistan Limited

HONDA CR-V

The Honda CR-V is sold as a Completely Built Unit (CBU) import and is available on confirmed order basis for the customers. The Honda CR-V was first introduced in Pakistan in 2005. The all new refreshed version of CR-V was introduced on July 20, 2008 which offered its customers a distinctive combination of the comfort of a sedan with the thrills of a SUV. The new Honda CR-V offers its customers a distinctive combination of refined styling and high quality. The Honda CR-V is available in 2.4L MT with Real-time 4WD. Honda CR-V features i-VTEC DOHC 4-stroke in-line 4 cylinder engine.

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Honda Atlas Cars Pakistan Limited

Price
In Price , the overhead cost , carrying cost ,order cost and exchange rate etc exists. The pricing of Honda Accord and Honda CR-V is based on their prices in Japan, exchange rate and excise duty in Pakistan. Although these factors also affect the pricing of Honda City and Honda Civic The pricing procedure followed in the HACPL is as follows: Selecting the Price Objective Determining Demand Estimating Costs Analyzing Competitors Costs, Prices and Offers Selecting a Pricing Method Selecting the Price

Place
Honda Atlas Cars (Pakistan) Limited has a good sales and distribution network spread across the country. The network includes 21 authorized 3S Dealers in 12 cities, 29 authorized 2S Dealers in 18 cities and 6 authorized 1S Dealers in 4 cities. HACPL dealerships are based on the 3S Facility (Sales, Service, Spares), 2S Facility (Service & Spare Parts) named Pit Shops and 1S Facility (Spare Parts) format, offering complete range of services to its customers. The overlook, OJT(On Job Training) and atmosphere is same in all the dealers showroom .

HACPL Authorized Dealers Customers

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Honda Atlas Cars Pakistan Limited

Promotion
In Promotion, mainly through dealership and if a new product is launch then promotion media is used like TV, Radio and newspaper. The advertising and promotion by Honda Atlas Company Pakistan (HACPL) is not a routine based program and is done mainly on new model change. Anyways the promotional means used by HACPL for its products and services include the following: Newspaper and magazines ads Press releases and magazines articles Car shows Website Calendars Points of Display at dealerships and hotels

These days HACPL is mainly advertising through the website and not using any other sources. HACPL spends a much time and money at advertising through the company website because in its point of view it is one of the best advertising/marketing strategies.

Market Segmentation
HACPL has segmented its market in a way that its ACCORD &CR-V is for elite class HONDA CIVIC for upper middle class HONDA CITY for only middle class

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Honda Atlas Cars Pakistan Limited

Customer relationship Management (CRM)

Customer service centers All the authorized dealerships in Pakistan are a source of customer satisfaction. The after sales are supported by the immaculate service and the availability of spares at competitive prices for every car sold. To facilitate the customers for any assistance they require, we have a separate department, called Customer Relations, at the head office. This department is supported by the subsequent Customer Relations Officers at all dealerships. The purpose of Customer Relations Department and Customer Relations Officers is to enable our customers in getting any sort of help required by them. Free services HACPL is a customer service conscious company, for which it is always looking for avenues to develop further relations with the customers who have already purchased the cars. We consider purchase of car as the beginning of relations with customers. To prolong this relationship and encourage the customers to keep on coming to the dealership, to get theirs cars maintained the HONDA way we provide three FREE CHECK-UP SERVICES to our customers. These are basically three periodic check-ups at 1,000 Km, 5,000 Km and 10,000 Km mileage which are normally done after 1 month, 3 months and 6 months of running the car. Other than providing service to customers another reason for this facility is to stress on the importance of periodic maintenance. Periodic maintenance is essential for every car and if this is performed regularly as per the maintenance schedule the car is trouble free and life of car increases by many years. For these free services the labor is not charged, whereas the customer has to pay for only the consumable like engine oil, oil filter, etc..

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Honda Atlas Cars Pakistan Limited

Repair and maintenance HACPL is providing regular trainings to the dealers' technicians. The trainings cover all aspects of the cars including the periodic maintenance, diagnostics, trouble shooting and repairs according to HONDA standards. From this we want to facilitate the customers in maintaining their cars in top-most condition and enjoying the comfort and performance of the luxury vehicles they own. It is our endeavor to have uniform service standards made available at all dealerships in accordance with the international Honda standards. Warranty Conditions and Advantages The warranty of the vehicle is valid for 12 months or 20,000 kilometers whichever comes first from the date vehicle is sold and is transferable.

HONDA ATLAS CARS warrants that it will repair or replace Free of Charge any part it supplies (excluding tires, batteries and other items which are warranted separately by their respective local manufacturers) found to be defective either in materials or workmanship, or both with the exceptions indicated in the Warranty Exclusions here under, provided that the manufacturer's recommended and required preventive maintenance services and repairs are strictly followed and the vehicle is utilized under normal condition. Feed back HACPL believe the essence of real service is when a customer feels proud to say "I am glad to have bought a HONDA" -- mainly because of HACPL quality service. For customers to become impressed with us HONDA need their continuous feedback to improve him selves for product and after sales service.

Target market
In general always has targeted upper class groups, upper middle class, and middle class& have been very successful in maintaining its target market and providing with the products of their needs.

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Car Production Potential in Pakistan (competitors)
Pak Suzuki Indus Motor Company(IMC) Dewan Farooque Motors Limited

Pak Suzuki In pursuance of the terms and conditions of the Joint Venture Agreement executed between Suzuki Motor Corporation of Japan (SMC) and Pakistan Automobile Corporation (PACO), Pak Suzuki Motor Company Limited (PSMCL) was incorporated as a public limited company in August 1983. PSMCL started commercial operations in January 1984 with the primary objective of passenger cars, pickups, vans and 4x4 vehicles. Pak Suzuki is the leading name in small commercial vehicles and passenger cars. Suzuki has launched Mehran 800cc, Cultus 1000cc, Baleno 1.3 & 1.6 Eli and JXR, Bolan van & Ravi pickup 800cc and Potohar jeep. The total production capacity of Suzuki Motors is about 50000 units and the total actual production in 1999 is 32,805. The sales volume of Suzuki is highest among the competitors with 31,296 cars as per June 30, 2000. Indus Motor Company(IMC)

Indus Motor Company (IMC) is a joint venture between the House of Habib , Toyota Motor Corporation Japan (TMC), and Toyota Tsusho Corporation Japan (TTC) for assembling, progressive manufacturing and marketing of Toyota vehicles in Pakistan since July 01, 1990.. Vehicles in Pakistan through its dealership network. The company was incorporated in Pakistan as a public limited company in December 1989 and started commercial production in May 1993. Indus Motor Companys plant is the only manufacturing site in the world where both Toyota and Daihatsu brands are being manufactured. Heavy investment was made to build its production facilities based on state of art technologies.

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Honda Atlas Cars Pakistan Limited

To ensure highest level of productivity world-renowned Toyota Production Systems are implemented. IMC's Product line includes 6 variants of the newly introduced Toyota Corolla, Toyota Hilux Single Cabin 4x2 and 4 versions of Daihatsu Cuore. We also have a wide range of imported vehicles.

Dewan Farooque Motors Limited

DFML is a joint venture between the Dewan Mushtaq group of Pakistan Hyundai motors limited Korea and Kia motors Korea.The company was incorporated on December 17, 1998. It is situated at Dewan city Sajawal 152 kms away from Karachi. Its annual capacity is 20,000 units per year, expendable to 40,000 units per year. The products of Kia motors are 1300cc car Kia classic 1500 cc car Kia spectra and 2000cc turbo diesel jeep. The principal activity of the Company is the assembly, progressive manufacturing and sales of Hyundai and KIA vehicles in Pakistan.

Communication channels
Honda uses one level channel for selling its cars. This is done mainly through the dealers that are of two types: 2-S 3-S

2-S Dealers These kinds of dealers provide only service and spare parts of HONDA. 3-S Dealers

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Honda Atlas Cars Pakistan Limited

These dealers in addition to services and spare parts also offer cars for sale. Their are18 authorized 3-S dealers all over Pakistan.

Events & Sponsors

Different events are arranged from time to time for the promotion of sales of HONDA CARS. Like in FEBRUARY 2003 a basant festival had been arranged on the rooftop of PEARL CONTINENTAL, where they provided all the beverages, kites, food etc. It was such a success that in the month of MAY it was booked by the counterparts of HONDA for the next basant. A rally from Islamabad to Bhurban was also arranged by HONDA in which any car of 1300cc and above (only HONDA) was allowed to participate. The idea behind this rally was to promote the safety of motorists. The theme of the rally was wear seat belts---your family loves you. Fashion shows are also held from time to time for the promotion of HONDA. All these are the Model Launch Event and the Brand Building Event.

Annual surveys

HONDA ATLAS CARS PAKISTAN LIMITED arranges the annual surveys in which different activities are done: Customer Satisfaction Market Share Customer Choice a. Reading Habits b. TV Watching Habits Brand Survey Social Group Education Level

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Market Trend

Competitive Advantage of HACPL

Honda Atlas Cars Limited company get the first mover advantage in Anti-Lock-Braking system (ABS) and Supplement Restraint System (SRS) technologies.

Positioning strategy of HACPL

Market positioning is arranging for a product to occupy a clear, distinctive and desirable place in the minds of the customers relative to completing products. The management of HACPL has planned a position that distinguishes their vehicles from their competitors ones. Its the shinning point of HACPL that after analyzing their positioning strategy they conclude that they provide maximum satisfaction to their consumers. To make good position in the automobile industry the HONDA first identifies the possible advantages about its vehicles. In order to have the competitive advantage, HONDA offer great value to choose target segments by offering more benefits and luxury accessories to justify their prices. Various strategies of HONDA In order to better position the vehicles HONDA is tend to adopt the following strategies: Positioning in relation to competitors Positioning in relation to product attributes Positioning by price and quality

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Positioning in relation to competitors As we know that HONDA has a solid differential advantage on its vehicles. To fend of its rival that is TOYOTA over here, HONDA has brought out successful models that are meeting the customers need so well. Positioning in relation to product attributes Under this strategy the HONDA management has more concern because the consumers of these luxuries vehicle are more intended towards the product attributes. HONDA has been continuously working to give more accessories to their vehicle in order remain alive in the minds of their target market. Positioning by price and quality HONDA has been very successful in positioning its vehicle in relation to the price and quality. The strategy is to have no compromise over the quality of its vehicles in regard to the parts.

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